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With hitches in Mombasa tea auction, Tanzania opts for its own

With hitches in Mombasa tea auction, Tanzania opts for its own

Industry and Trade

Tanzania has announced plans to roll out its own tea auction, a move that would tap major players from the country as well as from neighboring Rwanda, Burundi and Uganda, shrinking the turf held by the Mombasa auction. 

The country’s push for an auction is driven by the need to lower transport costs to Mombasa and boost farmers’ earnings. 

The reach is expected to be even bigger. The new tea auction will be conducted by the Tanzania Mercantile Exchange (TMX) via an online system, whereby buyers across the world will be able to get the opportunity to participate. First incorporated in 2014, the exchange provides futures clearing and settlement services. It also maintains a central securities depository.  The TMX primarily lists agricultural futures, with sesame seed futures accounting for a large portion of trades. 

The Tanzania Board of Tea (TBT) announced that the exchange will be based in Dar 

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The Kenyan government is considering a $15.4million financing option for smallholder tea farmers across the country to help them diversify tea production in Kenya with production of orthodox tea.

Kenya’s new $15.4 million plan for tea farmers

Kenya

The Kenyan government is considering a Ksh1.6 billion ($15.4million) financing option for smallholder tea farmers across the country to help them diversify their products.

Agriculture Cabinet Secretary Mwangi Kiunjuri has said that the proposal, which is now before the Head of Public Service, Joseph Kinyua, and the Cabinet for consideration, involves a financing model for smallholder tea factories to set up black orthodox tea production units.

READ ALSO:Kenyan tea farmers capture World Bank’s climate change deal

Black orthodox Tea is loose tea which is produced using the traditional method of tea production:plucking, withering, rolling, oxidation and drying.

It has an aroma that is easily identifiable and fetches more prices at the tea auction than the normal tea – thus the need for enhanced production of this type of tea to help cushion farmers from the volatile prices associated with traditional teas.

“In a bid to help our tea farmers …